PNB Housing Finance Q3 FY26 Results: Retail Book Grows 16%, NIM Stable at 3.63%

Mumbai: PNB Housing Finance Limited (PNBHF) reported its financial results for the third quarter of fiscal year 2026, showcasing resilient performance amidst a dynamic interest rate environment. The company held its earnings conference call on January 22, 2026, with the newly appointed Managing Director & CEO, Mr. Ajai Kumar Shukla, outlining the company's strategy and results.

Key Financial and Operational Highlights for Q3 & 9M FY26:

Loan Book Growth: The retail loan book grew 16% year-on-year (YoY) to ₹81,931 crores as of December 31, 2025. The total loan book stood at ₹82,203 crores.
Segment Focus: The Affordable and Emerging Markets segments now constitute 39% of the retail loan book and grew collectively by 31% YoY. The company aims to increase this share to 45-50%.
Asset Quality: Gross Non-Performing Assets (GNPA) improved to 1.04% from 1.19% a year ago. The company reported a credit cost of -19 basis points for the quarter, aided by recoveries.
Profitability: Net Interest Margin (NIM) remained stable at 3.63%. Annualized Return on Assets (ROA) for the nine-month period stood at 2.57%, while Return on Equity (ROE) was 12.31%.
Disbursements: Overall retail disbursements grew 16% YoY to ₹6,217 crores. While Affordable segment disbursements saw a temporary 15% YoY dip due to strategic recalibration in select southern markets, the Emerging Markets segment grew 25% YoY.

Strategic Initiatives and Management Commentary:

Under the new leadership of Mr. Ajai Kumar Shukla, PNBHF reaffirmed its growth guidance of 17-18% for the retail book. The management highlighted several strategic priorities:

Continued Focus on High-Growth Segments: The company will deepen its presence in Affordable and Emerging Markets, supported by an expansion of 40-50 new branches annually, primarily in Tier 2 and Tier 3 cities.
Launch of New Verticals: PNBHF announced plans to re-enter the Construction Finance (CF) business in a calibrated manner in Tier 1 cities. Additionally, it will start an "Emerging Developer Finance" vertical with an average ticket size of ₹25-30 crores to improve yields.
Response to Market Dynamics: Management addressed a temporary slowdown in the affordable segment in parts of Southern India, attributing it to local government ordinances. They expressed confidence in a rebound in Q4 FY26 as markets stabilize.
Asset Quality & Fraud Account: The company clarified that the recent reporting of a corporate account as a fraud (outstanding ~₹237 crores) has no financial impact, as it was fully written off in FY23. The overall asset quality outlook remains stable.

Outlook:

PNB Housing Finance is positioned to leverage the cumulative 125 basis points repo rate cut by the RBI in 2025, which is expected to support housing demand. The company aims to maintain NIMs in the 3.6-3.7% range and sees its new lending verticals (CF and Developer Finance) contributing 8-10% to the book over time, aiding future margin and ROA stability.

The management expressed confidence in maintaining its growth trajectory and profitability metrics, backed by a diversified loan book, improving cost of funds, and a expanding distribution network.